MW Turkey, nuts and Spam are appealing to a strained consumer, Hormel says

By Steve Gelsi

Meat and snack seller says shoppers are willing to pay for protein, especially for leaner meats such as turkey

Hormel Foods Corp. said it sees potential to grow its Spam, Planters nuts and lean turkey-meat products in the second half of the year as it focuses on offering value to "strained" consumers.

Hormel's stock $(HRL)$ rose 1.2% in afternoon trading Thursday, in the wake of the company's fiscal second-quarter results.

The meat and snack company, whose stock is a component of the S&P 500 index SPX, said it expects "meaningful contributions" from its turkey products in the second half of the year.

"Turkey remains a meaningful protein in our portfolio as the demand for lean protein continues to grow," Hormel Chief Financial Officer John Smiley said. "For other commodity markets, we continue to expect markets to be above last year, mainly pork, beef and nut input costs."

Hormel is also projecting "continued momentum" in its Planters nuts business, with an advertising push behind it, after the business exceeded the company's second-quarter expectations. Hormel bought Planters for $3.4 billion in 2021 from Kraft Heinz Co. $(KHC)$

Hormel also said its Spam brand's performance will be "equally impressive" in the second half as it was in its first two fiscal quarters. "We continue to evolve this iconic brand while staying true to its core identity as a versatile, convenient protein solution," the company said.

John Ghingo, Hormel's executive vice president of retail, said the company's meat products appeal to budget-conscious buyers.

"We know consumers are willing to pay for protein, especially with the added benefits of convenience, food flavor experiences and generally the emotional and functional benefits," Ghingo said. "So when you take those protein offerings [and] put those added benefits on top, we know that is still equating strongly to value for the consumer."

Hormel nudged up its fiscal 2025 outlook for net sales to $12.0 billion to $12.2 billion, from $11.9 billion to $12.2 billion. The company also trimmed its outlook for adjusted earnings per share to $1.58 to $1.68, from $1.58 to $1.72.

While the company said the current tariff landscape hasn't materially impacted results so far, it's currently assuming that tariffs will reduce full-year EPS by 1 to 2 cents.

Separately, Hormel reported net income for the quarter to April 27 that fell 4.9% from a year ago, to $180.02 million. On an adjusted basis, which excludes nonrecurring items, earnings per share slipped to 35 cents from 38 cents, but topped the average analyst estimate compiled by FactSet of 34 cents.

Net sales grew 0.4% to $2.90 billion, which was about in line with the FactSet consensus.

Including Thursday's moves, Hormel's stock has lost 3.2% in 2025, while the S&P 500 has edged up 0.5%.

-Steve Gelsi

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May 29, 2025 15:49 ET (19:49 GMT)

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